Advantage and disadvantage of credit card

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Credit cards can be the useful thing if you are using it to resolve your financial issues .but we have to be aware with all the uses and benefits about the credit card . people often thinks that if banks are offering us a particular amount in advance and after the due date we have to pay within agreed period and nothing would be wrong if we will pay the amount on time without interest … , well its a true but we need to be aware with the both facets of this credit card .

Now, everybody knows that credit card is a liability than why most of the people want to have it and after knowing that they to pay a fancy amount of interest , so the simple answer would be that not every person have savings and investments or if have than who can predict the use of money in the future not only this people can use it by many ways . So now let’s know more about this credit card .

What is credit card ?

Credit card is also know as a plastic money .which is provided by banks with the terms and conditions to the creditworthiness person . basically it works as a loan which user have to pay after a particular period of time .if users wouldn’t be able to pay that borrowed amount from bank at time they have to pay later with the amount of interest .

Advantage of credit card

  • If credit card users intends to buy something now which is needed utmost and want to pay later than they can use it veryconveniently.
  • You can protect your money from fraud by using creditcard.
  • If you are using your card wisely and paying your EMI cost on time than it will help you to build your credit score so that you could get lend in future conveniently.
  • Users can use it all around the world veryeasily.

Disadvantages of credit card .

  • Having credit card mean having a liability and if you wouldn’t pay the bill on time you will find yourself in a debt .many of the banks charges about 20 to 24 percent of interest which is enough to put you in an huge liability.
  • It is true that you can use credit can in abroad but it can charge a fancy amount for withdrawal ofcash.
  • If the users are not able to repay their credit card Bill on time than they will spoil their CIBIL which is a bad new for them for any future credit by Bank .

Now after knowing the disadvantages and advantages i want to address a quit useful application which is going help you a lot to maintain all records without worrying .so the name of the application is  CRED .this is the application where you can keep the track of your all credit cards and you can make your payments instant and could get amazing rewards as well. along with that the amazing this is, it reveals every hidden charges on your statement .

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